Cargill Quarterly Loss Widens to $87 Million

Cargill Inc., the largest U.S. agricultural company, said its fiscal fourth-quarter loss widened to $87 million from $6 million a year ago because of restructuring charges, higher energy costs and weak demand for flour, fertilizer and steel.

The charges crossed a number of Cargill units and were related to staff reductions, the closing of three flour mills and the revaluation of some businesses, said a spokeswoman for the closely held company.

Wayzata, Minn.-based Cargill has been shedding non-agricultural businesses and investing in its U.S. meat production and ethanol operations. Cargill said Friday that it will increase ethanol production by 8 million gallons to about 118 million gallons a year and form marketing alliances with other producers to meet expected rising demand in California and the Northeast.